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GUIDANCE NOTES FOR COMPLETION OF BUDGET FORMS Equal will fund up to a maximum of 50% total project costs. In order to cover all core central management costs that are essential to the programme - all bids to the EXODUS project will receive 45% of the total projects costs and therefore actual costs have to be matched at 55%. The EXODUS project will fund up to a maximum of 20 pilot projects across London and the South East – the total Equal funds available for all projects is £2.12m – value of total project costs £4.76M. EXODUS will consider bids in the region of £50000 - £200000 per local consortium. Please complete the budget forms ensuring that items of expenditure are broken down into the relevant categories – staff / beneficiary / other. Breakdowns should cover total projects costs and not just actual costs relating to Equal funding [ie cost to be funded by Equal max 45% and costs to be used as match min 55%]. Please provide as much detail as possible for each item of expenditure and avoid lump sum amounts. Staff costs should clearly state – job title, % fte, salary and should include on costs and increases. In kind match funding ie staff time / overheads / premises MUST be detailed in the expenditure budget as well as in the match funding worksheet [this is just a total of the match funding] as we need to provide details of total project costs. If you are providing cash match funding to the project please enter the amount in the final worksheet only. If you have any queries regarding completion of the budget forms please contact:- Clair Leach EISS University of Kent Keynes College Canterbury Kent CT2 7NP Tel 01227 823482 Email : email@example.com What can you claim? ESF and the match funding can support all costs relating to DP activity as long as they are eligible and you include them in your approved budget. All costs, including any start up and evaluation costs, must be incurred during the lifetime of the DP 1. Your DP start and end dates for each Action should take account of this type of activity. In the DP Closure Report all costs must be actual – they cannot be notional (theoretical) or estimated and cannot include any profit or compensation for lost opportunities. Ineligible costs 1 The only exception to this rule is the cost of the final Article 4 Verification certificate submitted with the Closure Report. When you complete your Closure Report, you will need to include an estimate of the amount of the verification before presenting the claim to your reporting accountant, and then alter this as necessary. There are some costs that are not eligible. The list is not complete. These include: loan and current account interest; other financial charges (except for transnational financial transactions); consultancy fees for activities such as filling in applications, or management fees or commissions; staff time spent filling in applications; buying equipment or buildings (threshold currently £1,000); costs of finance leases (see leasing section); relocation expenses; gifts; charging again for equipment or buildings which have previously attracted EU funding; any expenditure that does not clearly relate to the DP and its activities; and any expenditure, which is not supported by written sources. VAT VAT is an eligible item of expenditure only if your organisation cannot reclaim it. The treatment of VAT will vary depending on your status. It is very important for you to decide your VAT status with your local Customs and Excise Office. Eligible costs The following gives some examples of eligible expenditure and highlights areas which you need to consider. Staff costs Staff costs can include employer’s national insurance and superannuation costs. In the application you must include any expected increases in grade or pay scales for the whole period of the application. Where staff are involved with non-ESF work, you must not include the non-ESF elements. Decide how you are going to recognise and record these costs before the DP activities start as you can only include your actual expenditure in the claim. Each member of staff involved with the ESF project should complete a timesheet identifying ESF and non-ESF work in blocks of one hour or more. However an exception can be made where a staff member is only working for a few hours each month on ESF (for example, a specific meeting) and there is no weekly pattern of ESF or non-ESF working. In this case they should just record the hours on ESF work. The application must clearly show the number of staff involved in carrying out the DP and their individual pay rates where these vary. Travel and living expenses must relate only to ESF work. To work out how much a member of staff earns in an hour: (a) work out how many hours they work in a year. This is 52 weeks multiplied by 5 days, less the number of days of annual and public holidays they are entitled to, multiplied by the number of hours they work each day. (b) Divide their annual salary by the answer to (a) above and this is their hourly rate. If they work part-time, or leave during the year, work out their reduced number of hours. Sick pay and maternity pay You can only claim sick or maternity pay if it is in line with your organisation’s staff policy or on the individual’s contract of employment. You may claim sick or maternity pay, or staff replacement costs, but not both. Bonus costs Bonuses, or similar payments to staff, which are taxable, are eligible costs (although they are not eligible as match-funding contributions - see page 73). However you must include them in the initial application. These may include: bonus payments; loans; childcare or crèche payments; and company cars. Below are examples of costs which are not eligible: bonus payments or any other allowances you give your staff, free of tax; golden handshakes; relocation costs; and exceptional or extraordinary pension rights. External training You can claim the costs of training in connection with ESF activity. However it is expected that all organisations that submit an Equal application are in a position to deliver their DP activities with little staff training. Exceptions can be made if you identify that specialist knowledge will be needed for an individual who has specific needs for training that cannot be identified before the DP began. Beneficiary costs For employed beneficiaries, wages and allowances can include employers’ national insurance and superannuation costs. Applications should give numbers of beneficiaries and pay rates as accurately as possible. Remember you can only use actual information for the interim claims and closure reports when the DP ends. Daily travel costs for beneficiaries should show the cost for each beneficiary for each day. Travel costs must relate to actual costs incurred for travel, and cannot be a lump sum. When you are applying for external courses you should show the length of the courses, and the cost of travel, board and lodging. You should show the cost of the courses under ‘other costs’. Costs for caring for children or other dependants should show the weekly or hourly costs likely to be involved. Remember you should treat any contributions from beneficiaries towards childcare or dependent care costs as DP revenue. Payments to non-registered childminders are eligible, although DPs should be aware of and comply with legislation in force governing people who work with children. Signed records and invoices should be kept which indicate the date, hours and amounts paid. Beneficiary allowances You can claim beneficiary allowances up to a maximum of £180 a week. Allowances may affect the level of benefits beneficiaries are entitled to. You should discuss this with your local Jobcentre Plus office. Allowances may affect beneficiaries’ income tax situation, as the Inland Revenue may regard some allowances as taxable benefits. You are strongly advised to check with them before you set the allowance levels. You must monitor and evaluate the cost-effectiveness of any such allowances. And you must be able to explain clearly how you will sustain your experimental approach after Equal funding has stopped. Bursaries and grants to individuals or companies are not supported. Other costs Rent and leasing of buildings If you use only part of a building for ESF purposes, you should work out the amount you charge to the ESF accordingly. Depreciation of buildings Any asset, including a building, must have a fixed useful life. The length of a building’s life varies according to its type and purpose. Your accounting policies must set out the period of time and also show the way you calculated the amount of depreciation you are claiming. You should remove costs that are not eligible, including any EU or national funding help. It is not possible to say exactly how you should work out building depreciation as this is up to each individual organisation. However, the DWP would expect you to follow the principles set out in Statements of Standard Accounting Practice number 12. Generally DWP expect that a permanent building used for training purposes, such as a college or school, would depreciate in the range of 2% to 5% each year on a straight line basis (the same amount each year), reflecting a uniform life of between 20 and 50 years. If you use the building for 13 weeks in the year for ESF, then DWP expect you to set 25% of the depreciation charge against the DP. You should provide a list of the premises where you are claiming for depreciation. Depreciation of equipment you own The way you calculate depreciation must be in line with your organisation’s accounting policy. You should base claims on the actual costs of equipment you own. You can claim depreciation on second-hand equipment unless it has previously been claimed. You can calculate depreciation in many different ways; the most common being straight line and reducing balance methods (you work out the depreciation each year on the value of the assets in the books at the start of the year). It is normally expected that the smallest number of years over which you can depreciate an item is three years. If you receive capital grants towards the costs of fixed assets, you should take these grants from the costs of the fixed asset before you work out depreciation costs for ESF. Where you use deferred credits to offset depreciation costs, you must take the amount of the deferred credit from the depreciation costs for ESF purposes. Your accountant will be able to tell you if you use deferred credits. You must keep working papers showing how you have worked out depreciation costs for your DP. These include the costs and descriptions of the items you bought, when you bought them, how you worked out the depreciation, how long you spent using the items, where they are, and an estimate of their value now. You should provide a list of items to be depreciated and send details of how you worked out the depreciation costs together with an explanation of how you identified specific DP costs. Hire and lease of equipment Where equipment is not used only by ESF beneficiaries, you should show how you have identified your costs. You may need to apportion these costs (see Sharing Costs). You should show the actual costs of leasing equipment, including VAT where this applies (see notes on VAT), as well as the period of time covered. Finance leases These are similar to hire-purchase agreements. The lessee (the person who leases the equipment from someone else) is responsible not just for maintaining the equipment but also for insurance, repairs and so on. At the end of the lease the equipment becomes the property of the lessee. The costs of leasing equipment under a finance lease are not eligible. You should treat the item you leased as a fixed asset and depreciate it (work out its loss in value) in line with your accounting policy. You should work out the depreciation against market value on the same basis as you would for equipment you own. Operating leases Under this type of lease, the equipment remains the property of the lessor (the person who leases the equipment to you). You can claim the costs of operating leases if you can show that the costs of the lease are competitive and are similar to the rates charged in the market place. However, if a leasing charge for equipment (in any one year) went over, or closely matched, the full cost of buying the item it would be seen as an attempt to introduce capital expenditure as an eligible item under a different heading, and capital expenditure (over £1,000) is not eligible. Leasing properties Only the depreciation on the actual cost of the lease can be considered as eligible. Where 'peppercorn’ rent is paid, you only include the depreciation on the actual amount you paid for leasing the property in the calculation for the interim progress reports or closure reports when the DP ends. If your accounting policy does not include depreciation of leased properties, use the accounting standards which apply in Great Britain. Buying consumables You should give a list of consumables you need to buy with the estimated expenditure, on the application form. Treat IT software in line with your usual accounting policy. Buying small items of equipment You must give a list of small items you need to buy, with the estimated expenditure, on the application form. No single item can cost more than £1000. There is no limit to the number of small items of equipment under £1,000 which you can claim for. The total expenditure on small items of equipment will be taken into account when assessing your DP’s value for money. It is important to remember that when you buy IT equipment you cannot claim separately for each component part, such as the monitor, keyboard, printer and so on. ESF consider a computer to be a complete set-up. You can claim for the depreciation of equipment you own. You should not claim for equipment costing under £1000 unless you can identify the items in your accounts. Expenditure on small items of equipment, such as protective clothing for beneficiaries to use, is eligible providing it can be justified in terms of the Equal theme and the specific objectives under which your DP is funded. You must be able to demonstrate that the expenditure has met the identified needs of the beneficiaries. The equipment will remain your property and not the individual beneficiary’s. Second-hand equipment You can claim for the purchase costs of second-hand equipment providing: the equipment has not been originally purchased using state or Community grants; the price doesn’t exceed its market value; and it is purchased from an organisation outside the DP. You will need to provide evidence that the second-hand equipment you have bought is at the normal ‘going rate’. It is unlikely that commercially available second-hand equipment has been bought using public money. However, if you buy equipment from another organisation, you must get a declaration from them that they did not use grants to purchase the equipment in the first place. If a grant was used to purchase the equipment, you cannot claim any of the costs in the claim. No single item can cost more than £1000. There is no limit to the number of small items under £1,000 which you can claim for. The total expenditure on small items of equipment will be taken into account when assessing your DP’s value for money. Bank charges The lead partner or DP Ltd must set up a separate bank account to administer the Equal DP during Actions 2 and 3 and you can claim for costs of opening and administering this account2. You cannot claim for debit interest charges or other purely financial expenses. Transnational financial transactions (for example, commission on currency exchanges) are an eligible cost. Adapting premises and minor repairs and maintenance The costs are eligible providing the adaptations and repairs or maintenance are minor. As a rough guide, any work costing over £750 cannot be considered as ‘minor’. For example if you want to adapt your premises for easier access for people with disabilities, the work will not be eligible unless it is classed as minor. Costs of caring for children and dependants and other support costs Equal opportunities is one of the leading principles of Equal, and you should consider this carefully when you design your DP. Theme H specifically tackles gender gaps and job desegregation but equal opportunities cuts across all themes. If you provide care for dependants, you are demonstrating your commitment to this. All Equal DPs are encouraged to provide for the care of children and dependants. Costs, such as the provision of a crèche, are items of eligible expenditure. Other support costs to help disabled people or disadvantaged groups to take part are also eligible costs. Care costs can only be supported as part of a total package attached to eligible ESF activity. Care for children and dependants cannot be supported by itself. 2 However, if this is not possible due to financial policy or regulations, the lead partner or DP Ltd may use its main bank account, providing it contains a unique cost centre for the DP so that all financial transactions relating to the DP are clear and transparent. Match funding Match funding is the amount organisations (other than ESF) give towards the eligible costs of the DP. This section explains: the roles and responsibilities of a match funder; the difference between public and private match funding; ‘in-kind’ contributions; and how you can use volunteer time as match funding. The amount of ESF payable will not be more than the total eligible expenditure excluding contributions in-kind. Public match funding and contributions from the private sector Match funding is an essential part of how ESF works. ESF can only meet a part of eligible costs and the balance has to be found from other sources. This balance is known as match funding. The largest amount that ESF can provide (intervention rate) forms part of the agreement between the UK Government and the European Commission. Match funding may come from the public sector - public match funding - or the private sector - private match funding. You must have public match funding for at least 10% of the total cost of your DP. You will have to provide a Public Match Funding Certificate (PMFC) that shows you will be getting the funding. Details of how to fill in the certificate are issued separately with the certificates. If you are both the lead partner and you are going to provide all your own match funding, you will also need to fill in a PMFC. At closure stage and at agreement anniversary, you will complete a General Statement of Expenditure (GSE) for each public match funder to confirm the actual contribution each public match funder has made to the DP. In Equal, you cannot be a match funder and provide external expertise. The responsibilities of public match funders The match funder must: contribute to the actual eligible costs of the DP; inform the lead partner if they make any changes to the match funding they are providing or to the agreement which must be reported to the relevant Support Unit; make sure the funds are in line with the criteria for public match funding; make sure the funds used to attract ESF are eligible (for example, ‘clean’ i.e. do not contain any element of European money); carry out regular and formal monitoring of the DP to make sure that effective management and financial controls are in place; and make sure that ESF rules are being kept to. In cases where there is more than one public match funder, the responsibility will normally lie with the match funder providing the highest level of funds - the lead match funder - unless they make another agreement. Only public match funders can act as the lead match funder. The match funding agreement The public match funder must sign a Public Match Funding Certificate to confirm the amount of match funding they expect to provide. This certificate should not be considered a legal agreement. However, to reduce the risks of match funders not providing expected amounts, you may want to make a formal agreement with the match funder to make sure that they will: provide an agreed percentage of the approved DP costs; fulfil their responsibilities set out in the Public Match Funding Certificate; allow representatives from the EC, DWP, other government bodies, the Support Units and any other relevant monitoring bodies access to ESF records; and maintain clear records as required by EC and ESF regulations and guidance. The agreement should refer to the ESF-approved DP activity as described in the DP work plans. Colleges must now notify their local LSC of any Equal DPs they are match funding. As Equal is not co-financed, they must obtain specific local LSC approval to use LSC core funds as match funding on such DPs.3 In such cases, the local LSC should also be accountable for using LSC core funds as match funding, and so it follows that the LSC - not the college - should sign the Public Match Funding Certificate (PMFC). Definition of public match funds A public match funder is an organisation which directly or indirectly receives over 50% of its main funding from central or local government. To decide if your organisation can supply public match funding, work out your previous financial year’s receipts, excluding any EU monies, and the income forecast for the following year, again excluding any EU monies. If over 50% of the net amount (after deductions) comes from central or local government sources, you are able to provide public match funding for ESF-supported DPs. Non-profit making organisations, whether incorporated or unincorporated, registered with the Charity Commission can supply public match funding. The registration must be maintained throughout the period of the claim for ESF support. For fuller information contact the Charities Commission or visit their website. If you are an unincorporated organisation, you may be personally liable if you need to repay ESF. If you are in any doubt about this, you should ask your Support Unit. Universities are classed as supplying public match funding. 3 Please refer to the LSC website at www.lsc.gov.uk/news_docs/Circular.01.19.pdf for further details; the section on Co-financing is on pages 22-24 of the Circular. Definition of private match funds For ESF purposes, private match funds are defined as any money originating from private enterprise, including: public limited companies; private limited companies; partnerships which have no shareholders; co-operatives; self-employed people; and individual investors. Volunteer time is also treated as private match funding as the individual is viewed as the match funder. What funds can you use for match funding (actual and in-kind)? Whether private or public match funding there are two types of match funding - actual and in-kind. Actual match funding Other than depreciation charges, actual match funding within the meaning of the EU and ESF regulations is in the form of cash payments. The costs incurred by the lead applicant and donated as match funding (for example staff time and overheads) should always be classed as actual match funding as they appear in the accounts of the lead applicant. Depreciation charges incurred by the lead applicant and by its partners should also be classed as actual match funding. Match funding in-kind In-kind match funding is where an organisation or individual provides a service or product, but the actual cost of the service does not appear in the accounts of the lead partner. Examples include: time spent by the match funder’s staff while they are working on the DP; rent for premises payable by the match funder; and administration costs carried out by a third party. There are a number of points you should consider when you estimate your in-kind match funding at the application stage: the expenditure must be eligible for ESF; the organisation (or individual) providing the service or product must agree to you using it as match funding for the Equal DP; the organisation (or individual) providing the service or product must be able to provide clear records which clearly show its actual cost. All match funding must be verifiable and at cost – match funders cannot make a profit from ESF4; if staff costs are to be used as in-kind match funding, the costs must be supported by time sheets showing the amount of time individual staff members have spent on the DP; only the actual staff salary costs can be used to calculate the match funding; non-staff materials or services must be supported by invoices which have actually been paid by the match funder; the use of notional rent, discount charges, lost opportunity costs, profit or other ineligible items will not be considered as in-kind match funding; and match funding should not be kept at an artificial low level if it goes over the level required for the DP. We must stress that in-kind contributions must be the actual eligible costs incurred by the match funder. For example, you cannot use costs for buying capital equipment over £1,000 or for lost opportunities. As with all match funding, it must not contain anything that has already received EU support. An organisation providing match funding at actual cost cannot also provide other services to the DP, outside of the match funding agreement, which are costed at commercial rates. This is not eligible because a match funder cannot make a profit from being involved in the DP. Notional rent or rates If a local authority, for example, has provided accommodation for the DP at a cost lower than the normal commercial cost, only the actual rent it paid is eligible for ESF. It should not use the value of the property in the open market; this is not eligible for ESF support. Rate or rent rebates are not eligible as match funding. Lost-opportunity costs Many organisations rent or hire out rooms on a commercial basis. You cannot use the notional rent or hire of the room as the basis of your costs, unless there are clear records showing that you actually paid the rent. The costs of the room overheads such as electricity or rent are eligible for ESF, providing you can show that you have claimed only the costs of the overheads while you were actually using the room. 4 You must take care to identify the audit trail for in-kind match funding. For example, if the match funder donates software to the DP that it has developed or been given at no cost, it would be not be possible to identify the actual coast incurred by the match funder. The match funder cannot draw up a notional invoice using, for example, the cost of the software on the open market because the match funder has not actually paid for the software. This can be a problematic and complicated area, so you should seek guidance from the Support Unit if you are in any doubt about the validity of in-kind match funding. Discounts When an organisation provides a service for the DP and discounts the price, only the net amount actually paid is eligible for ESF support. Using beneficiary wage costs as in-kind match funding You can use the wages or salary costs of employed beneficiaries as match funding in-kind. Like any other match funding, there must be a clear audit record to support the amounts. Many lead partners have difficulties in demonstrating what costs have been incurred because it has not been made clear to the employer from the beginning of the DP what the ESF requirements are. For match funding to be eligible it must: accurately reflect the actual wage or salary cost of the individual beneficiary; only be used for that time spent on eligible DP activity; and be supported by written confirmation from the match funders. You may be asked to show that time spent on ESF-supported activity has been allocated in a fair and equitable manner. So you will need to account for all staff time spent by an individual to justify the amount you allocated to the DP. Where you use estimated or notional costs, or where you cannot confirm written evidence, the match funding will not be eligible. Because of the risks involved in not being able to confirm match funding amounts, we strongly recommend that you enter into an agreement with the match funders before the DP starts. Match funders often do not welcome requests for information at a later date. An agreement could include the following information: clear details of what help you or individual beneficiaries will receive from the DP; who is responsible for maintaining up-to-date, accurate records of what the beneficiary is doing; how you will monitor this information; and who will hold this information and how it will be safely maintained and made available if required. Information that will be needed to support interim progress reports or closure reports when the DP ends will include: the actual wage or salary costs of individual beneficiaries; timesheets showing accurate records of how the beneficiaries are involved in the DP; and clear records showing the beneficiaries’ activities. When you work out the in-kind costs you must remember: you can use only ‘actual’ staff costs, not lost-opportunity costs; you can claim time spent travelling to a DP activity if you can provide proof of the journey and the time you are claiming for is paid by the employer; an employer’s pension and national insurance contributions are eligible, but commissions, bonuses and benefits in-kind are not; and you cannot include the employer’s overheads. Extra travel or living expenses are eligible if they are: reasonable; represent the actual amount paid; and form the normal terms and conditions of employment in the organisation. You should: make sure that normal call-out rates used in many companies are not used as these will often include elements that are not eligible; and identify any development in the workplace on work records, for example on activity logs. It is important to tell individuals or companies taking part that if they are asked, they should be able to provide this information for further examination by auditors. It is not possible to cover everything in this part of the guidance. If in doubt contact your Support Unit. Volunteer time Unpaid voluntary work is eligible as private match funding in-kind. In addition to the normal rules for match funding, the following conditions apply. You cannot treat beneficiaries as volunteers during their time on the DP. You must cost all volunteer-time contributions using the method and guidance set out. You must make it clear to the volunteers from the beginning that they are helping the DP in their own private time and they are not employed on the DP. You will need to show payment claim and closure entries for volunteer time. The lead partner should hold complete, accurate and up-to-date records, which show not only the time sheets of volunteers but also a description of their activities. You should be able to match the information held to interim progress reports or closure reports when the DP ends. If you cannot do this, the relevant report entries will not be classed as eligible. The total amount of volunteer time will form part of the evaluation by your external auditors. See the section about external audit requirements for full details. If any paid employee performs additional duties on a voluntary basis, the costs are not eligible. The tasks performed by the volunteer should match the job titles and the notional rates given in the guidance. If a volunteer performs a task, which is outside of the range of the job titles provided, you must ask your Support Unit for approval. The Support Unit will need written evidence to justify technical or specialist rates. If a volunteer does the same or similar duties as paid staff, the rate allowed for the volunteer will be either the notional rate or the salary rate of the paid employee, whichever is lower. Methods for valuing unpaid volunteer time You will need to decide what DP tasks the volunteer is doing and which of the following roles best describes their job. You should use the notional salary rates below to work out their cost. Role Notional full-time salary Theoretical hourly rate Project manager £29,000 £16.76 Project co-ordinator £23,000 £13.13 Project researcher £23,000 £13.13 Project administrator £16,300 £ 9.38 These rates may change during the life of the Programme. If they do, the new rates will appear on the Support Unit websites. It is important that you keep up to date with any changes. You will need to show that the jobs carried out by volunteers are in line with the job title. For example, if you are claiming volunteer time for a DP manager, you will need to keep records to show that the job they did and the time spent on that job is appropriate to that role. The DP co-ordinator and DP researcher rate is appropriate for a volunteer trainer. If the volunteer changes their role at any time, make sure you use the appropriate rate. A different rate for more technical or specialist roles will be paid if a realistic price for the services can be reached. Examples could include signing for the deaf or providing qualified mentors for people with learning difficulties. However your Support Unit will need to approve the proposed rate at the start of the DP. You must provide clear evidence that the proposed rate is the normal ‘going rate’ for the job. Evidence could include job adverts for similar work or the existing pay of a volunteer who is already working on similar tasks. It is important to remember that the value of volunteer time is based on the theoretical value of the tasks performed by the volunteer for the DP and not the current earnings of an individual in their usual paid employment. Special arrangements for sole traders and partnerships Because of the difficulties involved in getting actual salary or wage costs from sole traders and people in partnerships, there are special rules which you can use. Where sole traders or people in partnerships are staff or beneficiaries and their wage or salary costs are used as private match funding you can either: continue to verify their actual wage or salary costs by using their previous year’s earnings; or use a notional hourly rate of £10 an hour to calculate wage or salary costs. A sole trader is an individual who has sole responsibility for their business management, works alone and is self-employed. Partners are defined as an association of from two to twenty people carrying on business in common with a view to a profit. If you intend to use the £10 an hour rate, you must make sure the beneficiaries and staff can prove their eligibility and status as: sole traders or partners; and people currently registered as self-employed for tax purposes with the Inland Revenue. You can only use the fixed hourly rate of £10 for sole traders or partners. In line with ESF requirements, you will also need to record the number of DP hours carried out by beneficiaries and staff. Funds from government programmes as match funding ESF can be used to enhance government programme contracts. However, there are some government programmes that have ESF allocated to them centrally. Also some government funding schemes will include ESF. Any programmes that already include ESF cannot be used as match funding for Equal. If in doubt, seek guidance from your Support Unit. Funding from other European Programmes such as ERDF cannot be used as match funding. The following programmes will be co-funded using ESF allocated to them centrally so you cannot use them as match funding. You must be able to confirm the status of any government programme used as match funding with the appropriate Department. If in doubt, seek guidance from your Support Unit. Connexions Connexions Service Personal Advisers (PAs) National Training of Personal Advisers will be funded centrally. Other Connexions match funding may be funded at a regional level. You will need to confirm with your contractor if you are able to use Connexions funding streams as Equal match funding. Adult Learners Week Childcare ESF support for government funding for childcare initiatives paid through the local authority (LA) or Early Years Development and Childcare Partnerships (EYDCPs) this will be clearly identified. Currently DPs supported are: recruitment campaigns teen parents Unblocking Barriers to Training and foundation stage training wrap around projects including Daycare Expansion and toy libraries. LAs and EYDCPs in any doubt about match funding childcare grant funding for ESF purposes should contact Leander Bracken at: DfES Sure Start Unit Level 2 A Caxton House Tothill Street London SW1H 9NA Phone: 020 7273 1388 e-mail:leander.bracken @dfes.gsi.gov.uk Student support Opportunity bursaries cannot be used as match funding. Information on the eligibility of other government programmes as match funding for ESF projects is given in www.dti.gov.uk/europe/mf1.htm - mf4.htm. Other government programmes For guidance on using LSC funds as match funding see page 69. Because of the wide range of programme funds that you could use as match funding, it is not possible to identify every possible source of funding or how you can use it to match fund. When you apply for Equal, you will be asked to demonstrate that your DP fulfils the added-value criteria (see separate section). Generally you should make sure that: your DP has outcomes which you can identify and measure separately from those paid for by the programme; and your DP aims are consistent with programme aims. For example you could: use Modern Apprenticeship (MA) funding to provide match funding for a DP for people under 19 to access MA; or increase the numbers of people on MA who are over 19; but not use MA to fund a DP aimed at long-termed unemployed people over the age of 25. ESF and New Deal If you want to use New Deal as match funding for Equal you will need to make sure that your DP and the New Deal share common aims. The most obvious route will be to develop activities which provide support for the long-term unemployed and young unemployed who are at risk from exclusion in the labour market. Jobcentre Plus will need to endorse any Equal application before it can be approved. (See Jobcentre Plus guidance for use of New Deal with ESF.) Jobcentre Plus is now a co-financing organisation. You can use contract funding, allowances or wage subsidies and money to meet individual training needs, for each of the New Deal options, to match fund eligible Equal activities. You can also use contract unit costs for the New Deal Gateway for match funding where activities are eligible and would add value. You can use ESF to fund eligible activities, which add value to core New Deal projects. Examples of these activities include: additional training to that funded by New Deal in the Full -Time Education and Training Option; additional training - within the New Deal period or in a specified period afterwards - in the Employment, Voluntary Sector and Environmental Task Force options; increasing wage subsidies during the New Deal option where these lead to continuing work or self-employment and, in the case of Voluntary Sector and Environmental Task Force, where these confirm employed status; subsidising wages following the New Deal period, where this leads to further outcomes; and providing additional places for those not eligible for New Deal support, for example women returners and young people not eligible for New Deal. You can use ESF to supplement New Deal waged options where this will add value, provided: recipients are not substituting for permanent public sector jobs; and the period of employment will lead to stable employment or sustainable self- employment. The maximum ESF contribution towards such a subsidy is 50% of the hourly adult minimum wage multiplied by 40 hours. So, for an Equal DP, the maximum payable will be £90 a week. This is based on the current minimum hourly rate of £4.50. The calculation is: £4.50 x 40 hours x 50 = £90 100 The subsidy can be paid for 52 weeks. It is a requirement of ESF that you use its support to add value in a cost effective way, by supporting activities which would not otherwise have taken place or which would have been undertaken less effectively. Examples of ways in which ESF may be used to add value to DPs include: an increase in the breadth or duration of training resulting in additional NVQs or qualifications units; an increase in the number of participants receiving training, to include those not eligible for New Deal; an increase in wage subsidies to make jobs secure, including doing it through an intermediate labour market; a period of wage subsidy following New Deal where this leads to improved employability or stable employment through further outputs such as guidance, additional qualifications or units and an improved employment record. A key requirement is for a DP to have additional, measurable outcomes with a clear link between these and the additional funding. Examples of how value can be added to wage subsidies leading to improved employability or stable employment include: using ESF to extend the period of subsidy from 6 months to 9 to12 months, and the employer promising to keep the participant for at least another three months; using ESF to extend the period of subsidy from 6 months to 12 months with the intention of keeping the beneficiary in stable employment; where the New Dealer has extra disadvantages or disabilities which would mean that 6 months would not be long enough to enable them to reach the standard needed by the employer for continued employment; and where the occupation concerned is one where women or men are under- represented and where additional subsidised employment would enable them to be trained to the necessary standard and then employed. In the case of wage-subsidy schemes in the private sector, employers will be expected to have stable jobs available for participants who reach an acceptable standard by the end of the New Deal period. You cannot use ESF to part - fund permanent public sector jobs. However, where a training course is intended to prepare a trainee for private-sector employment or where the training is at foundation or pre-entry level, temporary placements may take place within the public sector. Where the public sector contracts work out to private- sector firms, the contracted firm is normally considered eligible for ESF support for training individuals. The ESF contribution is limited to 50% of the total DP costs. New Deal projects bidding for Equal support are advised to take care not to commit themselves to expenditure which they cannot support because they do not have enough match funding. Potential DPs are also advised to work out a realistic through flow and to discuss the number in the target group and projected take-up levels with their Jobcentre Plus District Manager. Beneficiaries will be able to complete their Equal DP activity alongside any New Deal commitments unless (following agreement during the New Deal Gateway) a different option would offer them a greater chance of entering and retaining employment. In most cases, New Deal Personal Advisers will agree with Equal beneficiaries that Equal provision should continue during the Gateway period of New Deal. When New Dealers reach the Options phase, we expect that, in most cases, New Deal funds will be matched with Equal provision to enable a full- time New Deal Option to build on a part-time Equal course.
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